Interpretation of the Latest 2025 Rare Earth Export Control Policy: Scope, Exemptions, and Compliance Guidance

I. Rare Earth Products Explicitly Within the Control Scope

According to the announcements, the control system now covers raw materials, production equipment, key auxiliary materials, and related technologies, as detailed below:

1. Rare Earth Raw Materials (Especially Medium and Heavy Rare Earths):

•Announcement No. 18 (Implemented in April 2025): Explicitly controls 7 types of medium and heavy rare earth raw materials and their products.

•Announcement No. 57: Implements export controls on certain medium and heavy rare earth-related items (such as Holmium, Erbium, etc.).

1. Rare Earth Production Equipment and Auxiliary Materials:

•Announcement No. 56 (Effective November 8, 2025): Implements export controls on certain rare earth production equipment and auxiliary materials.

1. Rare Earth Related Technologies:

•Announcement No. 62 (Effective October 9, 2025): Implements export controls on rare earth-related technologies (including mining, smelting separation, metal smelting, magnetic material manufacturing technologies, etc.) and their carriers.

1. Foreign Products Containing Controlled Chinese Rare Earths (“Long-Arm Jurisdiction” Clause):

•Announcement No. 61 (Some clauses effective December 1, 2025): Controls extend overseas. If products exported by foreign enterprises contain the aforementioned controlled rare earth items originating from China and the value ratio reaches 0.1%, they also need to apply for an export license from China’s Ministry of Commerce.

II. Regarding “Exemption Lists” and Products Not Subject to Controls

The document does not mention any formal “Exemption List”, but clearly points out the following situations that are not subject to controls or can be exported normally:

1. Clearly Excluded Downstream Products:

•The document explicitly states in the “Items Not Subject to Control” section: Downstream products such as motor components, sensors, consumer products, etc., are clearly not within the control scope and can be exported according to regular trade procedures.

•Core Criterion: Whether your product is a direct raw material, production equipment, auxiliary material, or specific technology. If it is a finished end-consumer product or component, it most likely falls outside the control scope.

2. Legitimate Civilian End-Use (Not an “Export Ban”):

• The policy emphasizes that control is not a ban on exports. For export applications for legitimate civilian end-uses, after submitting an application to and undergoing review by the competent department of the Ministry of Commerce, a permit will be granted.

• This means that even for items within the control scope, as long as their end-use is proven to be civilian and compliant, and an export license is successfully obtained, they can still be exported.

Summary and Recommendations

Core Recommendations for You:

1. Identify Your Category: First, determine whether your product belongs to upstream raw materials/equipment/technology or downstream finished products/components. The former is highly likely to be controlled, while the latter is typically unaffected.
2. Apply Proactively: If your product falls within the control scope but is indeed for civilian use, the only way out is to apply for an export license from the Ministry of Commerce in accordance with the “Export Control Law of the People’s Republic of China”. Do not export without a license.
3. Inform Your Customers: If your customers are overseas and their products contain controlled rare earth items you exported (value ratio ≥ 0.1%), be sure to inform them that they may also need to apply for a license from China starting December 1, 2025.

III. In summary, the core of the current policy is “full-chain control” and a “licensing system”, rather than a “blanket ban”. There is no fixed “Exemption List”; exemptions are reflected in the licensing approval for compliant civilian uses and the explicit exclusion of specific downstream products.